EU Regulation Will Increase Cloud Adoption

News Article - Thursday, 06 December 2012 10:39

By: Kerry Butters Category: Connectivity

New research from IDC, commissioned by the EU, has found that creating policies that take away barriers to cloud adoption would increase spending in the public cloud to around €77.7bn by 2020, currently worth around €35.2bn.

At the moment, IDC found that obstacles to cloud adoption include confusion around "legal jurisdiction”, as people are uncertain where their data is being stored. This was discovered during a survey carried out by IDC, who also found that further barriers include worries surrounding security, the "trustworthiness of suppliers”, a lack of understanding on the cloud business model and "fear of lock-in with propriety systems”.

This, IDC says, means that organisations are also concerned about portability between different service providers, guaranteed data access, local support and "loss of tax incentives on capital spending”.

The only way to overcome these barriers, suggest IDC, is to put in place "regularity action at the EU level and a determined effort to increase the accountability of cloud vendors”.

"The migration to a new IT paradigm enabling greater innovation and productivity – the roll-out of cloud computing – will generate substantial direct and indirect impacts on economic and employment growth in the EU,” European Government Consulting IDC EMEA associate vice-president Gabriella Cattaneo said.

He went on to say that if the "EU adopts a ‘no intervention’ policy towards cloud adoption”, then the technology could contribute up to €88bn to the EU GDP. However, if the EU takes a proactive approach to regulation it could generate around to €250bn GDP in 2020, significantly upping the non-intervention policy revenue.

"We estimate that the cumulative impact for the period 2015-2020 will be €940 billion in the "policy-driven” scenario, compared to €357 billion in the "no intervention” one,” European Industry Solutions research vice-president Giuliana Folco said.

Policies could include an environment in the EU "harmonising data protection and privacy protection regulation, so that cloud service providers and users are sure that the same regulations are respected, no matter where the data is”.

Other factors to consider include developing EU-wide certification for cloud vendors in order to clarify regulations and promote common standards, no matter where data is stored. This is intended to build trust between vendors and organisations and promote common standards.

However, in the survey, both large and small companies alike blamed "insufficient and patchy high-speed broadband coverage” as a serious barrier to driving full cloud adoption in the EU.

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